Perpetuities. The Canadian Government has once again decided to issue a consol (a bond with a never-ending interest payment and no maturity date). The bond will pay $30 in interest each year (at the end of the year), but it will never return the principal. The current discount rate for Canadian government bonds is 4%. What should this consol bond sell for in the market? What if the interest rate should fall to 3%? Rise to 5%? Why does the price go up when interest rates fall? Why does the price go down when interest rates rise? If the current discount rate for Canadian government bonds is 4%, what should this bond sell for in the market? (Round to the nearest cent.) Fully amortized loan (annual payments for principal and interest with the same amount each year). Chuck Ponzi has talked an elderly woman into loaning him $45,000 for a new business venture. She has, however, successfully passed a finance class and requires Chuck to sign a binding contract on repayment of the $45,000 with an annual interest rate of 6% over the next 10 years. Determine the cash flow to the woman under a fully amortized loan, in which Ponzi will make equal annual payments at the end of each year so that the final payment will completely retire the original $45,000 loan. What is the amount of payment that the woman will receive at the end of years 1 through 10? (Round to the nearest cent.) Payments. Cooley Landscaping Company needs to borrow $24,000 for a new front-end dirt loader. The bank is willing to loan the funds at 8.5% interest with annual payments at the end of the year for the next 9 years. What is the annual payment on this loan for Cooley Landscaping? What is the annual payment on this loan for Cooley Landscaping? $ (Round to the nearest cent.)